All posts by Alyssa Gautieri

17 Markets To Watch In 2017

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By: Camilla McLaughlin

For prime real estate markets in the U.S., 2016 was a year of change, and expectations are that 2017 might bring even more. No matter how a market changes, there is always opportunity. In honor of the year at hand, we are shining a spotlight on luxury in 17 cities.
Atlanta, Georgia — Luxury here rebounded after a slight dip at the end of the summer and the months leading up to year-end saw eight or more $2 million-plus condo sales. Outside the city, the high-end market hasn’t missed a beat and prices continue to rise. Barring any substantial shocks, one agent says, “I think we will see a very robust spring.” Lots of new construction is poised for mid-town in 2017.

Austin, Texas — Few cities can match Austin’s recent track record. It has led Urban Land Institute’s (ULI) list of “markets to watch” and even sparked a category ULI dubs “18-hour cities.” Austin has gained a reputation as a tech mecca. But taxes, cost of living and a lively arts scene also woo newcomers. Yet, the new year finds a few wondering if the fast pace can continue.

Chicago, Illinois — Inventory frames the story here. Lots of new construction on the market resulted in a slight slowing of luxury sales in city center, while suburban upscale sales were up 5 percent year over year. Still, city living continues to be a big trend, particularly for boomers who want to downsize or just have their place in the Second City. In demand: residences associated with a five-star hotel.

Delray Beach, Florida — The once sleepy Delray has taken off this year. A downtown revitalization has given this Florida secret, close to both Boca Raton and Palm Beach, a new shine without compromising laid-back ambiance. Third quarter saw a $2.98 million average luxury price, a 70-percent increase over last year. Buyers are a mix of permanent and vacation home residents. Single-family homes with water access demand a premium.
Denver, Colorado — One of the leaders in the West and nationally, Denver real estate continues on solid footing with year-to-date sales in the $1 million-plus market up 102 percent. Still, with 7.5 months of inventory, indicators are inching towards a balance — a plus for buyers. Look for slower appreciation in the year ahead.
Honolulu, Hawaii — With a 30-percent increase in sales and 17.7-percent increase in prices, Honolulu had one of the best markets nationally at year end. Christie’s International Real Estate considers it one of the 10 cities to watch globally in 2017. Hot properties include residences in new towers in Ward Village.
Jersey City, New Jersey — Luxury is beginning to find a new home here. The rush is on for upscale digs, thanks to easy access to Manhattan and bargain prices compared to the Big Apple. Neighborhoods in transition and plenty of new construction translate into opportunities for buyers.

Malibu, California — Location matters here. Flat properties set on a bluff overlooking the most desirable beaches fetch top dollar. The ultimate: Carbon Beach, nicknamed Billionaire’s Beach. The year-end median sale price hit $2.447 million, higher than nearby platinum locations, but still below 2008’s peak $3.3 million. Expect prices to rise only 0.6 percent in the next year.
Newport Beach, California — Buyers, sellers — both win here. By year end, list prices had increased by 19 percent, but the inventory of homes on the market
increased by 9 percent year over year. Look for the balance to tip toward buyers. Price increases are expected to taper down in 2017.

New York, New York — Contrary to popular perception, the bottom has not fallen out of the luxury market here. But it is a market of opportunity, particularly if an ultra-property happens to be on your horizon as the end results of a multi-year building boom come to market.

Phoenix, Arizona — Canadian buyers might be on pause, but if fall data is any indication, the high end around Phoenix is on the upswing. Closed transactions were the highest of any September since 2005, with Arcadia hitting a record. The number of homes priced above $500,000 grew by 13 percent last year, but in October the number of listings under contract was up by 12 percent. With prices holding steady, this is one market we’ll be watching this year.

Portland, Maine — Long a summer haven for the wealthy, Maine, particularly Portland, is garnering attention from out-of-staters, from retirees to young entrepreneurs and tech professionals. With a growing reputation as a foodie destination and excellent home prices, expect to see this city’s luxury star rise, particularly in New England. Recent upscale transactions range from $1 million to $4.5 million.

Salt Lake City, Utah — The fastest growing nationally, Utah is also one of five states chalking the largest year-over-year price appreciation, so it’s no surprise to find Salt Lake on many “best of” lists this year. Park City’s reputation as a luxury Mecca continues to expand, while nearby Salt Lake’s luxury cachet is just beginning. Adding to the appeal: a year-round outdoor lifestyle, urban living without mega-city hassles, diverse locations and architecture.
Seattle, Washington — Few other places occupy as many top five positions on lists of top markets. While forecasts vary depending on who you ask, one thing is certain: there is no sign of real estate in this exploding tech hub cooling any time soon. High prices in Vancouver are diverting buyers here. Interesting trend: buying sight unseen for properties priced above $750,000.

Stowe, Vermont — The grand dame of East Coast ski resorts is completing a $500 million upgrade, including a new high-speed quad, an inter-mountain gondola connecting Mt. Mansfield and Spruce Peak, a new $90 million Village Center, and amenities including a ski club. New real estate ranges from single-family homes to townhomes and a private residence club. Brisk sales and new construction set the stage for 2017.
San Diego, California — Transactions and prices still have room to expand here. It’s no surprise that projections call for a 9.9 percent price increase in 2017. Downtown luxury is in demand with new large-scale developments, including North Embarcadero Esplanade and Waterfront park injecting a new vibe into parts of the city. Artful new towers include Pacific Gate.
Lake Tahoe, California and Nevada — Here, it’s a tale of many markets depending on location and price. Lakefront, East Shore shows the average luxury sold price up 29 percent to $4.8 million. Ski properties are also up with a year-over-year increase of 175 percent in Martis Camp. Sales in Northstar also jumped with the total dollar volume increasing by 237 percent. Few other places outside the Bay Area benefit as much from San Francisco’s economy.

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A New State of Mind

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By: Camilla McLaughlin

Photo courtesy Istockphoto.com

Taking the temperature of luxury real estate at year-end was not an easy task, with post-election uncertainty still palpable and an interest-rate hike in motion. What does it mean for upscale consumers? A new state of mind is what Diane Ramirez, CEO and co-chairman of Halstead Property, sees emerging in the marketplace.
Cautiously optimistic … price conscious … limited inventory … a glut of properties … sell now … hang tight. These are all phrases industry leaders used to characterize the upscale market as 2016 transitioned into 2017, and nothing better illustrated the contradictory dynamics of luxury real estate at year-end.
High-end properties led the recovery, but this year the luxury story is, in part, one of increasing days on market and slower price appreciation in some but not all locations. “Some markets are seeing a slowdown in the high-end and some aren’t. It’s important to keep this in perspective,” says Philip White, president and chief executive officer, Sotheby’s International Realty Affiliates.
“Markets that are seeing a slowdown are places that came back hard and fast from the recession,” says Stephanie Anton, executive vice president, Luxury Portfolio International.
“In most markets, we’re seeing price increases stabilizing, and 2017 will be a great time to buy, says Lesli Akers, president of Keller Williams Luxury Homes International. “Basically, we’ve moved out of a ‘crazy’ sellers’ market into a ‘normal’ sellers’ market. We anticipate the luxury market will be more balanced in 2017.”

No Market Shift Overall
By the end of December, the most recent data confirmed what many anticipated: 2016 would go on record as an exceptional year. “Over the past 11 months, the majority of markets have seen home prices return to their pre-recession levels, reaffirming that 2016 has been the best year for the housing market since the recession,” said Dave Liniger, CEO and co-founder of RE/MAX.
Even though rising mortgage rates and a limited inventory in affordable price brackets are expected to temper sales, the outlook is positive, and at year-end, favorable indicators continued to accumulate. October sales — up 5.9 percent year-over-year — charted the highest pace since February 2007. Expectations are 2016 sales will tally 5.42 million, the best year since 2006, when 6.47 million properties sold. September prices, according to the Case Schiller Home Price Index, surpassed the July 2006 peak. With just over a four-month supply, the inventory is well under the 6-month benchmark that signals a balance between buyers and sellers. Looking ahead, prices are projected to rise 5 percent this year, followed by a 4-percent increase in 2017, when existing sales are expected to track at 5.52 million.

According to the RE/MAX National Housing Report, more homes in all price brackets sold in November than in any November in the last eight years, with home sales 19.1 percent greater than a year ago.

“The housing market has proved more resilient than many feared this time last year,” observes Akers. “At the lower end of the price scale, there’s very limited inventory. Anything under, say $300,000, is flying off the shelf.”

Most importantly, there are no signs pointing to a market shift anytime soon. In fact, almost three quarters of industry experts surveyed by Zillow do not expect the pendulum to swing back in favor of buyers until well beyond 2017. The largest number, 42 percent, see it taking place in 2018 while a few even look past 2020.

Compared to recent years, interest from international buyers softened in 2016. “The worldwide economic slowdown, like everything else, is relative. Granted, we all have to be mindful of  global challenges with the potential to slow the foreign investment in high-end property, but these types of challenges have yet to negatively affect the majority of the affluent,” says Gino Blefari, CEO of HSF Affiliates LLC.

Luxury is Local

On the other hand, a range of variables from a surge of new construction to the value of the dollar, to new requirements for transaction disclosures, are affecting sales in certain high-end locales, while a lack of properties puts a damper on transactions in others. The end result is a diverse and stratified luxury market.

“It’s a tale of many markets and, also, markets within markets. Depending on the market, certain price points are more active than others. We also see the disparity in demand for new development and construction,” shares Charlie Young, president & CEO, Coldwell Banker Real Estate LLC.

“Real estate is a local market business, so there are always going to be outliers and exceptions to overall trends. It’s all about supply and demand,” shares Akers.

“The West has been strong continually for the last several years. The East Coast had a little pre- and post-election slump or slowdown, but that seems to be improving now with the stock market’s reacting favorably to the election,” says John Brian Losh, publisher of LuxuryRealEstate.com.

Uber-luxury properties in New York, Miami and platinum neighborhoods on L.A.’s Westside capture the most attention from both traditional and social media. It’s tempting to consider that heady realm as indicative of luxury overall, but those price points and locations represent a slim slice of the market. It’s for good reason economists are prone to use sui generis to characterize this rarified sphere.

“When we look at the ultra-high-end $15 million-plus price range, it’s a very small percentage of overall U.S. home sales — we have to consider things such as affordability, behavioral trends and more,” says White.

Recently, John Burns, CEO of John Burns Real Estate Consulting weighed in to counter reports of a national luxury slowdown. According to Burns, luxury home sales continue to increase and sales of homes priced above $600,000 in the last 12 months exceed the prior 12 months by 10 percent. Data from NAR also shows homes priced above $750,000 accounting for 4.55 percent of overall sales in the first 10 months of 2016, compared to 4.491 percent in 2015.

If anything, the recovery itself has been a story of many markets. “We’ve not had a single year where you can say every sector was growing or performing well. The luxury market did better in the early years, but in the past year appears to be one of the weaker parts of the market,” says Jonathan Smoke, chief economist for Realtor.com, who sees real estate overall as a “big dynamic ecosystem.”

Ask agents and experts where luxury sales are still hot and they tick off a range of places as diverse as Denver, Los Angeles, San Francisco, Portland, Seattle, even parts of Florida. And the risk in these markets is not a lack of buyers, but rather not enough homes to sell. Of the 35 largest U.S. metros, Boston has had the largest decline in inventory year over year, according to Zillow. 

Paul Boomsma, president of Luxury Portfolio International and COO of Leading RE, also sees diversification of the high end as a positive indication that the luxury sphere might be settling into what could be considered normal. “When you’re in a normal market, it’s not the same everywhere.”

Uncertainty surrounding the election also put some real estate plans on the backburner, although reports from agents at the end of December suggest this might be a temporary adjustment.

Inventory is Down, Except…

The supply of homes for sale priced above $1 million fell 2.4 percent in the third quarter from a year prior, while those priced above $5 million increased 17.2 percent, according to Redfin.

“Inventory across the board in the broader market has been — and I believe will continue to be — a concern, with the exception of sections overbuilding in new construction. In the upper price brackets, it’s shown to be an issue as well. On the other side of that sword, we have areas where our $7 million-plus and certain $20 million-plus buyers have many to choose from, so that is a sign of few active buyers and not so much an inventory issue,” explains Craig Hogan, vice president for luxury, Coldwell Banker Real Estate LLC. 

In New York City, where the number of for-sale properties grew in 2016 and prices stabilized and even softened, those who know the market say the pendulum still favors sellers. “It’s not a buyers’ market, but buyers do have more options now,” says Eric Serras, principal broker at Ideal Properties Group.

In Manhattan, the number of properties for sale priced at $30 million-and-up is unprecedented. “We’ve never had a supply at that level and with that level of superior finishes. There is nothing that isn’t superb. Usually you have a jewel or two of those, but we have a number of jewels now. It obviously creates a bit of an oversupply,” observed Ramirez.   

Hope and Change?

According to Redfin, luxury home prices rose 1.4 percent in the third quarter of 2016 compared to last year, to an average of $1.6 million. Redfin’s analysis tracks home sales in more than 1,000 cities across the country and defines a home as luxury if it is among the top 5 percent most expensive homes sold in the city in each quarter.

Stock market volatility early in the year followed by global economic uncertainty related to the Chinese economy and Brexit may have dampened price growth, but it didn’t keep luxury clientele from buying. Sales of homes priced above $1 million increased 6.8 percent in the third quarter from a year prior. Sales of homes priced above $5 million were mostly flat, inching up a mere 0.4 percent.

Instead of a slowdown, Anne Miller, director of Brand Marketing for Re/Max, describes the current status for luxury as more of a pause as a result of a watch- and-wait mode post-election.  “Right now, everyone is positive about 2017.” Also, she says, it’s important to remember this is a discretionary purchase. 

All of this underscores how much real estate has become a passion for the affluent. “We know on average the top 1 percent own at least four houses in different locations,” Anton says. “They are focused on real estate, but the post-recession affluent consumer is more price sensitive, more sophisticated, more focused on research and more involved in the process. They are becoming greater partners with their agents.”

Many believe a change is in the offing for luxury. “We are seeing increased activity since the election and believe this represents a pent-up demand in the upper price points,” says White.

Even in New York, a “new state of mind” is replacing what Ramirez calls “a lackluster desire to move forward.” Too many options immobilized potential buyers, who hesitated because a better option might be available the next day. This lack of urgency even trickled down to lower price points. Now, Ramirez says, “People are realizing, ‘this is the market, this is the new normal. So, let me look for what is perfect for me and move forward, there is nothing else to wait for.’”

“What we see is today’s most affluent buyers consider themselves to be prudent. Nobody is spending money frivolously, but they’re spending money. What you have to remember is what may be frivolous to one person is an absolute requirement to someone else, so the person who is making that purchase, it’s not a frivolity to them because then they’re making a prudent purchase,” explains Boomsma.

No matter what happens there is a good chance the love affair between the affluent and real estate will continue. “They are always looking for the next best thing. They want to invest their money wisely, and if they can get in sooner and find something they absolutely love, the better it is,” says Miller.

Wild Cards

Year-end finds us at a unique vantage point, where everything from foreign policy to taxes to the economy seems to be on a mythic tipping point. For luxury, several potential wildcards could be at play. Consider: “tax cuts that might benefit high-income or higher-net-worth individuals that could provide the incentive, the means and the interest to invest in real estate,” says Smoke. “Real estate is a long-term inflation hedge, and so if indeed those funds are more available because of tax cuts and/or from financial market performance…. And inflation is more expected in the future, there could be more individuals pursuing specific investment and second homes because of the ability to access an inflation hedge.”

A potential negative, according to Smoke, would be changes to the mortgage interest deduction. “Imposing a cap is going to impact luxury more than other parts of the market, and, in particular, one part of the cap could be no longer allowing an interest deduction on second homes or vacation homes,” he says. While not all the upper-tier relies on mortgages, changes would still affect a swath of this demographic, such as older baby boomers who comprise a substantial segment of this market.

Still, Boomsma says he finds it interesting that in post-election concerns, the economy is not at the forefront. “It’s certainly not in the perception right now that the economy is the great concern, so from this perspective when it comes to luxury real estate, that’s probably a good thing,” he says.

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An Island Like No Other

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By: Samantha Myers

Designed by Foster + Partners, 50 United Nations Plaza is a magnificent architectural addition to the Manhattan skyline, offering 88 condominium residences just a block from the UN headquarters. Among its luxurious apartments is an astonishing duplex penthouse apartment, currently on the market at $70 million.
Jill Mangone, director of sales with Zeckendorf Marketing, describes the residential building as an “island site” — an uncommon feature for New York City. “The building is very open on all sides, and as a consequence of that, even the apartments on the lowest floors enjoy tremendous light and space for views,” says Mangone.

From the hard-to-come-by private motor court, the lobby greets residents with a 20-foot water wall feature that backs to an open circular fireplace. Past the water and fire elements are the elevators that can either bring you to your residence or to the amenity-filled floor described as a “temple to luxurious wellness,” fit with a health and fitness center, spa and 75-foot swimming pool, not to mention abundant wine bottle storage available for residents.
An immediate distinguishing factor for 50 United Nations Plaza is the remarkable 10,000-square-foot penthouse, exceeding luxury standards in all definitions of the word. Contributing to the price tag are a 10,000-pound, handcrafted stainless steel staircase; two outdoor spaces, one of which features a heated, infinity-edge pool; and impeccable 360-degree views of some of the most recognizable buildings in the world, including the Empire State Building, UN Secretariat and Chrysler Building.

A feature exaggerated in the penthouse, but a fixture for every apartment in 50 United Nations Plaza, is the deep bay window design that frames the city vistas. “The curtain wall features deep bay windows that truly animate the views. You don’t have a flat panel of glass with a one-facet view — instead, you have this surrounded quality. It brings you out into the view, and brings the view in,” says Mangone.

Rounded glass windows, coupled with stainless steel and burnished gold, create a shimmering iridescent exterior for 50 United Nations Plaza as it stands at 43 stories tall, making its mark on the city skyline.
“One of the qualities of life in New York that really impressed Norman Foster was the brilliant quality of light for so much of the year. He was very intrigued by this, along with the use of stainless steel in skyscrapers. Therefore, stainless steel as a design element is consistent throughout the entire building and was a deliberate attempt to harken back to its use on the Chrysler Building, and to a lesser extent, the Empire State Building,” says Mangone.
Also on the market at 50 United Nations Plaza is apartment 20A, a 3-bedroom turnkey residence exclusively designed by Bennett Leifer offering a livable, internationally accessible space with iconic and recognizable pieces of furniture and accessories.
To find out more about 50 United Nations Plaza, visit 50unp.com.

Photos courtesy of Chuck Choi, Marco Ricca and Paul Warchol

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Inspired In The Bath

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Photos courtesy Maison Valentina

For a luxurious bathroom, pair the Symphony Bathtub, inspired by music, with the Envy Chaise, accented with soft button tufting and polished brass trim. The Lapiaz Freestanding Washbasin, pictured below, was inspired by a stone frozen and cracked to reveal a golden interior.

By Kelly Potts

Luxury design brand Maison Valentina is changing the way bathrooms are viewed with exclusive pieces that transform a restroom into a masterpiece. The brand was formed in 2015 as part of the Menina Design Group in order to fill a perceived gap in the interior design realm of luxury bathroom elements.
Maison Valentina puts a modern spin on standard pieces with its geometric and textured designs in classic color palettes consisting mostly of black, white and gold. It offers high-end bathtubs, sinks, mirrors, lighting and chairs designed with materials such as brass, marble, wood and glass. The pieces each have a new story to tell, the company says, and are created for “someone that enjoys details, art, luxury, cosmopolitan and a modern way of living.”
The brand finds inspiration in every aspect of the luxury world, including restaurants, hotels, fashion, photography and cities. CEO Joaquim Paulo says, “Our team’s inspiration comes from different perspectives: the study of art history, following the main currents of design, architecture, sculpture, painting and even music has a strong influence in our work.”
Some pieces boldly acknowledge the source of their inspiration, like the Metropolitan washbasin, which pays tribute to the Metropolitan Museum of Art. The elegant washbasin is available in either a black glass or gray mirror finish, and the brand notes that this elegant and sober piece is a tribute to the culture center in New York City.
Joana Gouveia, marketing manager of Maison Valentina, notes that the company puts a high focus on comfort, excellence, luxury and exclusivity. She says, “The finest materials and quality make it possible for the brand to transform every space into a relaxing and luxurious spa environment,” stating that the company guarantees excellence in every piece and offers a unique experience for each client through its personalized customer service.
Gouveia says that her favorite piece from the collection is also the best seller: the Lapiaz Freestanding Washbasin. “Its shape, colors and haughtiness take me to a world where everything is possible and the unattainable doesn’t exist,” she says of the freestanding sink that features polished brass details and mirrored sides.
In the future, the company hopes to continue to grow the collection and eventually allow its customers to furnish an entire bathroom with Maison Valentina pieces.

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Vision Becomes A Reality At Ward Village

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Opening of first mixed – use residential tower marks major milestone for Ward Village Community.

On November 17, 2016, The Howard Hughes Corporation, welcomed its first residents to Ward Village, the company’s 60-acre community in the heart of Honolulu. Developed by the Howard Hughes Corporation, Waiea will be the first mixed-use residential tower.

Along with its first residences, Waiea®, Ward Village includes three additional mixed-use residential towers – Anaha, Aeʻo, and Ke Kilohana – which are currently under construction. Aeʻo will complete construction in 2018; it will include 466 residences and O‘ahu’s flagship Whole Foods Market.  Ke Kilohana is slated for completion in 2019, and the 424 home tower welcomes a flagship Longs Drugs to the neighborhood.

Between downtown Honolulu and Waikīkī, Waiea includes 174 residences and will be home to internationally acclaimed restaurant Nobu Honolulu. In mid-2017, Anaha will include 317 residences and the first Merrimanʻs restaurant on O‘ahu.
Waiea’s architecture is influenced by its shoreline location, the cultural connections to water and the story of Hawaiian fishing god Kuʻula and his son ʻAiʻai. Waia also features work by internationally renowned artist, Tony Cragg. By year’s end, Auahi Street will provide dedicated bike lanes, offering a pedestrian-friendly experience.

“Today marks a major milestone for Ward Village as we welcome our first residents to this growing community. The vision of Ward Village is to create a thriving neighborhood in the heart of Honolulu, and that vision became reality today,” said Todd Apo, Vice President of Community Development, The Howard Hughes Corporation. “Waiea’s name and design honor the history of this place and highlight our efforts to honor the past while building a brighter future for Honolulu.”
Waiea, which means “water of life,” was designed by renowned Vancouver-based architect James K.M. Cheng in partnership with locally-based WCIT Architecture, and makes a stunning contribution to Honolulu’s skyline. Waiea’s interior design by Tony Ingrao complements the building’s exterior, with refined and exceptional detailing throughout the its homes and common spaces.

Michelin-star chef Nobuyuki Matsuhisa will open his flagship Honolulu restaurant on Waiea’s ground level in December, joining a variety of dining at Ward Village.
Ala Moana Beach Park and Kewalo Harbor can be seen from the building’s amenity level. Amenities features an infinity edge lap pool, state-of-the-art fitness center, playground, splash pad, dog walk, outdoor lounges and entertaining spaces. Indoor amenities include a private theater, library, golf simulator, spa, as well as multiple dining and entertaining spaces.

Ward Village presents architecture, local shopping, dining and the arts and culture of Hawai‘i for a unique experience for its residents and visitors. Homes in a variety of price points are available in the five Ward Village towers currently for sale. The Information Center and Residential Sales Gallery is located at the iconic IBM Building at 1240 Ala Moana Blvd.
For more info, visit www.wardvillage.com
Photo credits from Ward Village

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